Staggered ATH Drawdown Entries with a Recovery Exit

Summary

This strategy tracks an all-time high and opens long positions in stages as price falls 10%, 15%, and 20% below that peak. Each trigger can fire once before a new high resets the entry markers. It allocates a fixed dollar amount at each level, then closes the full position when price recovers to within 5% of the tracked high. The document describes this as a way to spread entry timing and reduce average cost during a pullback.

The published settings identify BTC/USDT futures on Binance and a daily test period from late 2019 to late 2024, but no performance results are reported. The strategy may accumulate positions during a prolonged decline, use up available capital, or exit at a level that does not suit all conditions. Its results also depend on price eventually recovering toward the high. The source and prose disagree on the purchase amount: the narrative says $1,000 per entry, while the default parameter and code specify $50,000.

Key ideas

• The strategy tracks the prior all-time high and measures current closing price drawdown from it.
• It makes separate long entries at 10%, 15%, and 20% declines, with each level limited to one entry per high-water-mark cycle.
• A new high resets all three entry markers.
• The strategy closes all positions when price is within 5% of the tracked high.
• Prolonged declines can trap positions and consume capital, and the document provides no backtest performance results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.